P&C Start Up

[apala028]

Hello Everyone,
We are an agency in the state of Florida, we have been doing business in Life and health for some time now. We have a large number of clients that we would like to work with in P&C, but it is completely different from life and health. I've read about some ways to get started such as becoming a member of an alliance or cluster.

Now I would like to know in your experience, which one would you join, why? What do you think about SIAA? (I've read a lot of posts from agents that recommend them) Also heard about InsuranceNoodles, which is recommended for nobbies but when I got more information I didn't like the fact that your agency wouldn't be appointed so if at anytime we wanted to leave, although the book of business is ours, the policies would be stuck with them since we are not appointed.

Can you give me some suggestions? What's the best way to start?

Thank you all in advance!

 

[Heather]

I went with SIAA in 2011. Best choice for me.

I thought I had an instant book with my LAH business but it was not that easy. My final expense and medicare customers had all been with their agents for generations. Also there is a big difference in earning $400 for someone new to medicare advantage versus earning 10% as earned off a $500 a year auto policy that you must service. Also initially the LAH business had to pay for the P & C business. Some times my husband and I talk of relocating out of state and the thought of starting a scratch P & C agency again would kill me.

Best advice I have is talk to your LAH book, ask the customers you know well would they consider moving any of their auto, home, etc business to you or at least getting quotes from you.

 

[veemagen]

This is response to your inquiry about starting the P&C insurance business. I have been in insurance business for over 25 years in New York and and here in Florida. I had LAH license before and in the process of getting it again.Right now I am also an active REAL ESTATE BROKER. I am duly licensed in Florida and have 2-20 General Agent license. Would you like to give me some information as to where you are located etc. I am in Longwood (Seminole County) Florida. May be we can shake hands and help each other. You may contact me at 3215573113.

 

[indienoise]

It depends on what is most important to you. Compensation? Binding authority? Ownership of your book? Flexibility to do business your way? Lack of restrictive contracts? Back end support and/or reduced pricing on software or other systems?

A cluster or aggregator is for you if you need binding authority, want instant profit sharing, need some of the back end stuff handled for you, etc. Different groups will handle things differently, so talk to a bunch of them to see whose terms you can live with best. Compensation will vary, your ability to leave the group and when you can leave and what it will cost you is an important thing to consider, if you don't plan on staying with the group forever. Even if you don't think you'll leave the group, perhaps your circumstances will change and it's a factor you'll need to consider. How can they help you get established? What systems can they get you set up on, and how reduced is the pricing? (i.e. management software, rater, perhaps even ISP or other services like efax, esignature, etc.). Does the cluster give you access to regional carriers? That will be important, especially in FL.

If you think you can bare knuckle it without binding authority, and can live with lower compensation for a while, MGA's and wholesalers are an option. Pick the right ones, and when you get appointed with the carriers they give you access to, you can roll your book without a non-compete or buyout. Be sure to read their contract carefully, because some of them, like Insurance Noodle or Smart Choice, DO have a non-compete. Read carefully, because in the case of Insurance Noodle, they say you own the book, but you are barred from direct appointment with those carriers for 2 years, so if you leave them, naturally you will lose many of those clients. You won't get the same support going this route, and you may have to wait as long as 24 hours between quoting and binding. Cost of entry is typically lower doing it this way, but you will make less for what you write until you can get appointments. If you do this, you will still NEED to get some appointments on your own. You should be able to at least get a handful, as some carriers, especially nonstandard and some midmarket auto carriers, and a couple of property carriers (namely UPCIC and Foremost) shouldn't be too hard to get.

Just depends on what's most important to you.

 

[ZappMan]

Contact your L&H folks & get some Dec. pages. Then try to get directs with some carriers touting the fact that you have an instant prospecting data base that is doing current business with you in other lines and wants you as their P&C Agent.

Is Iroquois in your area? I have appt.s some through them & some direct. Doesn't SAN group want a huge up front $ amount? I think they will finance it for you, that's good of them.

 

[Gary Roth]

We are a member of SIAA. Our master agency is SAN Florida. They will give you the support and markets you need to enter property and casualty sector of insurance. Do you have a property and casualty license?

SIAA has three master agencies in Florida. Depending on what part of FL your agency is in would dictate which master agency you should contact.

 

[cgreene]

If you want multiple states SIAA is not the right fit. Their MGA here in Al is horrible.

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National General, ACCC, and Dairyland are pretty easy to get

 

[jkearns]

Go Captive local, such as State Farm, Allstate, Nationwide or Farmers and then use a wholesaler or a general agency as well, if they decline it or do not fit your captives appetite and then broker and go independent nationally in other states.

 

[indienoise]

Go Captive local, such as State Farm, Allstate, Nationwide or Farmers and then use a wholesaler or a general agency as well, if they decline it or do not fit your captives appetite and then broker and go independent nationally in other states.

No. Please do not.

 

[insurance1822]

Go Captive local, such as State Farm, Allstate, Nationwide or Farmers and then use a wholesaler or a general agency as well, if they decline it or do not fit your captives appetite and then broker and go independent nationally in other states.

I'm starting to question you dude? You CANT broker if you're Allstate or SF? And who suggests a captive? If you work in this industry & don't know that then something's clearly afoul in Denmark